ACEN secures green term loan facility from SMBC

ACEN Corp.’s subsidiary, ACEN Renewables International (ACRI), signed a $150-million green term loan facility with the Singapore branch of Sumitomo Mitsui Banking Corp. (SMBC) to finance the power firm’s renewable energy (RE) projects across the region.

The green term loan has a tenure of five years. Through the loan, ACEN aims to enable its strategic expansion into several key international markets, including Australia.

SMBC Head of Renewables, Utilities & Infrastructure Sector Banking Asia, Zia Azeez said the financing is a continuation of its partnership with ACEN across multiple renewable projects in the region, commencing with their first overseas project in Indonesia some years back.

“We look forward to continuing this journey with ACEN as they march towards 20 gigawatts (GW) of green power by 2030,” Azeez said.

SMBC acts as both lender and green loan coordinator.

“We are very pleased with the closing of this landmark US$/AU$ dual-currency loan with SMBC. This benchmark deal not only lends support to our momentum in expanding our international business but is also a testament to the faith our banking partners place in our ability to execute on our vision.

This facility is a strategic addition to ACEN’S portfolio of green financings aimed at fulfilling our contribution to achieving net zero commitments,” said ACEN’S Group Treasurer Cecile Cruzabra.

SMBC Executive Officer, Corporate Banking Asia Pacific, Hideo Uchida, said the financial institution is “proud” to extend its support for ACRI in its push for a greener future.

“This achievement underscores the strength of our relationship and our shared commitment in supporting the Asia Pacific region’s transition towards a Net Zero aligned future. As we celebrate the success of this closing, we look forward to our continued partnership with all our clients on their transition journey in achieving their sustainability ambitions.”

ACEN has about 4,800 MW of attributable capacity from owned facilities in the Philippines, Australia, Vietnam, Indonesia and India, with a renewable share of 99 percent, which is among the highest in the region.

Its aspiration is to be the largest listed renewables platform in Southeast Asia, with a goal of reaching 20 GW of renewables capacity by 2030. The power firm is also committed to transition its generation portfolio to 100 percent renewable energy by 2025 and to become a net zero greenhouse gas emissions company by 2050.